Human Resource

Management
HUMAN RESOURCE MANAGEMENT IN INDIA
(EVOLUTION AND CHALLENGES)

Submitted By :
Sadiq Aftab ( CE-093-11-12)

Introduction of Human Resource Management in India

India considered as potential for economic growth.

Unique position made after liberalization on Indian economy during early 1990 that
allowed foreign investment.

Multinational establish footprints.

Traditional firms turned competitive and professional.

HRM becomes focal point for investment and innovation.

Indian Labor Market has high level employment in informal and unrecognized sector.

Informal sector characterized by an absence of written or enforceable employment

contractor.

Introduction of Human Resource Management in India

In 2008, Government of India introduced unrecognized workers social

security system.

Informal sector aid formal sector but their contribution is unacknowledged.

After liberalization private companies attract employee in large numbers.

Faced with competition for best employees, Employer focusing on HRM.

Business growth slowed down during 2008-2009 due to global recession.

Global recession resulted in shape of reducing or stopping employee intake,

cutting back on employee facilities focus on employee performance and
reduction in salary growth.

Introduction of Human Resource Management in India

Economic challenges put pressure on companies to attract, retain and

motivate employee for high performance.

Create fun-filled workspace for mobile and ambitious young generation.

In2008, Indian industry claimed that only 39.5% Indian graduates are
employable.

Strategies to prepared employees and organization to be competitive.

Merged requirement of global businesses , demographic conditions,

socio-economic and regulatory system and aspiration of employee in
new organization.

Introduction of Human Resource Management in India

Some factors are a blend of tradition and modernity are as follow.

Employees are more mobile and take risks with their career choices.

There are more and more young leaders.

Demand by all to be a part of decision making process and to understand

the context of organizational actions.

There are people from diverse religious, economic and linguistic

background.

Importance is given to educational and professional membership.

Universities attended and socioeconomic background are sources of status.

Introduction of Human Resource Management in India

Organizations have traditionally ignored considering people as source of distinct competitive

advantage and finding people management.

Some HR Challenges becomes wish list are as follow.

Creating culture of high performance

Retaining talent

Recruiting

Moving from a patriarchal, hierarchical management to a more team based, informal culture in
organization.

Linking training with performance.

Compensating knowledge workers.

Building interpersonal relationship and managing conflicts.

Going global.

Introduction of Human Resource

Management in India

HR contributed significantly to warding enhancing competitiveness by leading transformational

agenda, facilitating ownership change and integrating successive acquisitions.

The visible element of shift was the move from the record and time keeping activity to a more
involved role that could impact businesses.

The amount of administrative work perform by HR team and qualified person are recruited. HR
department to be performing four following role:

Administrative expert

Champions of the employee

Agent of change

Strategic partner

Trade union movement in India has seen a gradual reduction in militant trade union activities.

HR promote Decent work respect employee right and ensure fear treatment for all at the work
place.

Evolution of Human Resource

Management in India

Famous for craft man ship.

Traditional craft men worship to Europe and other continent as early as 70s
century.

Employer and employee relationship guided by master salve relationship.

In 1850 formal industrial organization emerged British ruler to

institutionalized system.

In 1920 formation of trade union.

1929-1931 recommended appointment of labor officers and other changes.

TATA steel introduce a series of welfare measures for workers became

mandatory by law.

Evolution of Human Resource

Management in India

In 1947 personal management underwent significant changes.

Mix economy encouraged.

Industrial organization classified as public sector and private sector.

Constitution of India provided protection to the worker through constitutional

provisions.

In 1970 and 1980 HRM functions in an organization included looking after personal
and administration, industrial relation and labor welfare.

Rise of managerial unionism exert influence in public sector.

In 1961 Indian aluminum company defined work output, staffing patterns and
incentive scheme and establishment of management training institute and
business school.

Evolution of Human Resource

Management in India

In mid 1980 some following factor influences HRM

Welfare of worker

Legislation

Government policies

Trade unions

Emerging Trend

Change in economy

In mid 1980, organization establish separate department to dealth with

personnel function.

Evolution of
Human Resource
Management in
India

Shift Towards Human Resource

Management

Systematic attention to HR increase organizational effectiveness.

Awareness led to direct involvement of top managers and line manager in HR in

process.

Towards Human Resource

Management Focuses on Business

In 1992 Indian firms face direct competition with MNCs.

Government introduce competition in secondary sectors like banking and insurance.

Economic growth demand for talent and higher education system.

Private players and corporate houses to enter the field of higher education.

Government of India initiate structural reforms including budgetary support to loss making public
sector union.

Listing public companies in stock market.

Upgrading technologies fund supporting voluntary retirement schemes etc.

In may 2000, National renewal fund created to help council and redeploy public sector worker.

Massive number of people needed for these jobs saw the development of recruitment as a very
specialized function.

Indian company get sustained businesses from abroad.

After 2000 competitive pressure and budget cut force search cost effective locations for outsourcing
such work.

Towards Human Resource

Management Focuses on Business

In 2008-2009 economic recession re-examine HRM approaches.

To save cash and increase productivity, firms had to downsize and cutback on the
amount spent on HRM departments.

HRM department also reduced their activities and number of members.

Government Increased compensation level and propose scheme which paid

performance employee.

HRM claimed decision making position in organization.

HRM aligned work with businesses and create long term values for stakeholders.

HRM Design innovative work options, policies and practices.

Towards Human Resource

Management Focuses on Business

HRM ensure employee get work from their zone of comfort.

Mahatma Gandhi National Rural Employment Guarantee ACT provide

minimum number of work days in rural areas on a floor wage rates.

In 2010 introduced Industrial dispute bill.

Post 2010, the challenges before HRD have been different.

With sign of improvement of Indian Economy and consequences

increases in demand of HR, firms will focus on HRM initiatives if they
continue to attract and retain best employees.

Thank You!